Abstract: A method of compensating delay in an linearization loop of a power amplifier and a linearization arrangement of a power amplifier, which arrangement includes an I/Q modulator, one or more power amplifiers to be linearized and generating delay, and a feedback loop including an I/Q demodulator when the I/Q modulator and the I/Q demodulator derive an oscillator frequency from the same local oscillator. In accordance with the invention, the delay generated the power amplifier in the feedback is compensated by delaying a local oscillator signal applied to the I/Q demodulator. The delay of the local oscillator signal applied to the I/Q demodulator is generated by an amplifier optimized to have a great delay, preferably by a small-signal amplifier.